Madrid, Juve, Barca tap credit markets for €1b+ in financing

There’s been a burst of activity in the It’s been a busy winter for soccer financing the major European clubs

Real Madrid has secured financing for the long awaited redevelopment of the Santiago Bernabeu with a syndicate of banks taking on a €575 million issue. US lenders Bank of America and JP Morgan led the deal with local banks Santander and CaixaBank also participating. El Confidencial says the financing is for a period of 30 years, with interest capped at a maximum of 2.5%.

Juventus has been busy issuing €200 million in non-convertible bonds to qualified investors across Europe just last week. Use of proceeds is stated by the club as “to provide the Company with financial resources for its general corporate purposes, streamlining the structure and the maturity of the debt.” With the purchase of Cristiano Ronaldo and recruitment of other high-wage stars the emphasis is likely to be on the latter and using the funds to clean up the capital structure. Juventus is also exploring plans to redevelop their Turin home.

And finally, Barcelona also announced €140 million in financing from two US funds, according to El Pais. Pricoa Capital Group and Barings have extended €90 million and €50 million respectively for use in normal operations and transfer funds. El Pais says the club do not have to repay the loans for five years and have agreed an interest rate of 1.8% subject to periodic adjustment. While most reporting is treating this as long-term debt it appears that this is actually a revolving credit facility that Barca will draw on for short-term financing.

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Madrid, Juve, Barca tap credit markets for €1b+ in financing

Uncertainty Over Libya’s Juventus Stake

There was an article about Libya’s investment in Juventus in Bloomberg today.  A good summary for those unfamiliar with the topic:

Libyan leader Muammar Qaddafi’s Libyan Arab Foreign Investment Company SA, or Lafico, is the second-largest shareholder in the record 27-time Italian champion, with a holding worth 12.8 million euros ($17.5 million) at the current share price. The stake has been reported in regulatory filings.

Company official Khaled Zentuti is a member of Juventus’s board, which next meets Feb. 28 to discuss half-year earnings, although the team doesn’t know if he’ll attend.

“I suppose Lafico has many other problems regarding internal governance,” Marco Re, a spokesman on the club’s corporate affairs, said in a telephone interview today. “I have no idea what they’re going to do with regards Juventus.”

Read the whole thing here Bloomberg News.

Uncertainty Over Libya’s Juventus Stake